70th SWCS International Annual Conference July 26-29, 2015 Greensboro, NC

1. An Integrated Landscape through
Precision Business Planning
David Muth Jr., PhD
AgSolver, Inc
July 28th, 2015

2. History

3. History:
Agronomic Strategies
Rake and
Bale Removal
No Cover Crop Rye Cover Crop
Total Annual
Sustainable
Residue
(short tons)
Percentage of
Field
Managed
Sustainably
Annual Soil
Loss
(short tons)
Total Annual
Sustainable
Residue
(short tons)
Percentage of
Field
Managed
Sustainably
Annual Soil
Loss
(short tons)
Red. Tillage 39 21% 336 297 83% 194

4. Emerging Ag Information Services

5. Profit Zone Concept

6. Identifying Subfield Profit and ROI:
Examples pulled from current reports

7. Primary Message
Environmental Performance and Economic Performance are
driven by the same goal:
Maximize the output per unit of input

8. Subfield Financial Product Design:
Current Practices
Summary
50 Year Yld Ave: 170 bu/acre
50 Year Yld STD: 38 bu/acre
Profit Average: $47 $/acre
Profit STD: $235 $/acre
Years Profitable Ave: 31
Years Profitable STD: 14
Percentage of Field
Profitable: 74%

9. Subfield Financial Product Design:
Release Acres
Summary
Discontinue ops on areas with ave
loss > $250/acre with risk adjusted
ins prem’s and int rates
Profit Average: $76 $/acre
Profit STD: $124 $/acre
Percentage of Field
Profitable: 72%
Percentage of Field
Used Profitable: 81%

10. Subfield Financial Product Design:
Risk Management Through Agronomy
Summary
New production at loss >
$200/acre with adjusted ins prem’s
and int rates
Profit Average: $105 $/acre
Profit STD: $149 $/acre
Percentage of Field
Profitable: 79%

11. ROI Focused Agronomic Management
No Cost Zone
Expense Limited Zone
Revenue Zone

12. Conservation Planning:
Financial and Environmental Benefits
Profitability
and
environmental
performance
are linked
Nutrient Reduction Strategy Implications
• First set of improvements through improved business
performance
• Fast actions to slow down regulation
• Buffered production systems

13. Identifying the Opportunities
Acres in supply
area:
Acres in corn at
least 3 of 4 years:

14. Identifying the Opportunities
Year
Acres with loss
>$200/acre
2010 1,999,639
2011 1,564,059
2012 3,476,371
2013 1,821,062
All 4 Years 1,259,901

15. Calhoun County
Non Profitable Acres
Nitrate Leaching on
Non Profitable Acres
(lbm N)
Calhoun 31,074 1,268,214
Sac 28,936 673,287
Buena Vista 22,253 601,591

16. Profit Zone Planning Process

17. Profit Zone Planning Process

18. Profit Zone Planning Process

19. Value Across the Supply Chain
Ag Retail/CCA’s
Land Managers
Conservation
Professionals
Policy
Administrators
Financial Services/
Investment/
Farm Management

20. Questions?